FinnAust Mining LON:FAM Pituffik ilmenite potentially highest global grade. Final results
- FinnAust Mining which is evaluating the Pituffik titanium mineral sands project in Greenland has produced its financial results today.
- Nature appears to have been kind to the Pituffik project with what looks like potentially the world’s highest grade ilmenite seen in sampling. The company highlights that Pituffik is in the top percentile of titanium mineral sands projects by grade reviewed by SRK.
- FinnAust have encountered areas within the project area with grades in excess of 90% ilmenite, a remarkable grade by any standards. The company states that there are potentially higher grade deposits globally but as yet they remain undiscovered. (Grades were also independently determined by visual inspection by Peter Johannessen Senior Researcher, Sedimentology & Stratigraphy Department, Geological Survey of Denmark and Greenland (GEUS)
- The board, backed by Western Areas, are “attracted to the opportunity to deliver production at low cost in the relative near term via a dredging operation within the marine environment using industry normal equipment and practices.”
- Work has started on the delineation of a JORC resource.
- The team are progressing toward the application of an exploitation license ahead of delivering a proof-of-concept bulk sampling program in 2017.
- The company anticipates “dredging a small amount of material next year to demonstrate that the logistics and processing routes currently being developed are precise before ramping up our operation towards a full production scenario.”
- The company is working with Royal IHC, a major Dutch dredging company which is able to lend in house wet mining equipment and generation of a ‘high level’ cost estimation.
- FinnAust is looking to define a processing route and has appointed KeyPointE Pty Ltd and QuedTech Pty Ltd for the next phase of metallurgical test work
- A large metallurgical sample has been prepared and shipped for purification, analysis and distribution and this should evolve into pilot scale continuous testing later this year.
- The team have a high degree of confidence that the Pituffik concentrate could, with further processing, be suitable for chloride slag manufacture to produce TiO2 pigment or titanium metal.
- Mild weather has helped the company advance with extensive trenching over the main project area and all 260 auger drill holes show significant horizons of ilmenite-rich sands.
- FinnAust report a loss before tax of £620,059 vs £561,381 in 2015.
- Management are focussed on the potential development of Pituffik but continue to see value in the exploration portfolio in Finland.
- Cash: FinnAust had £425,046 of cash in the bank at end June and has since raised a further £500,000.
SP Angel Conclusion: The revelation that Pituffik is in the top percentile of ilmenite projects evaluated by SRK is good news highlighting the ‘world-class’ potential of the project.
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